The Emirates Securities and Commodities Authority (SCA) and the Dubai Department of Economic Development (DED) have signed a Memorandum of Understanding (MoU) to co-operate in the inception of public joint stock companies, and simplify, facilitate and develop the necessary procedures for the licensing of securities companies in Dubai.
The MoU also includes co-ordination in the fields of training and exchange of expertise. The initiative is part of efforts to serve the national economy and enhance the UAE’s investment environment by bringing in greater transparency and promoting stronger corporate governance standards.
Mr Abdullah Salim Al-Turifi, Chief Executive of SCA and His Excellency Mr Sami Al Qamzi, Director General, DED, signed the agreement. Officials from SCA and DED attended the signing ceremony held recently at the DED headquarters in Deira.
As per the agreement, the two parties will be linked electronically to issue and renew trade licenses for public joint stock companies and securities companies, to exchange information and data related to Dubai’s Annual General Meetings, and to provide data related to the procedures of issuing shares, debt bonds and Islamic Sukuk whether at inception or at later stages.
DED will obtain SCA’s final approval before issuing licences to joint stock companies and companies operating in the field of securities. DED will also take all necessary measures to stop the commercial activity of these companies within the law, at the request of SCA.
Mr Al-Turifi said the MoU falls under SCA’s regulatory and operational duties. He said: “The agreement with DED is a model of partnership between federal and local bodies that aim at strengthening government services in the UAE and Dubai, to cope with the global changes. It will contribute to enhancing cooperation between SCA and DED in facilitating and developing the necessary procedures to grant licences swiftly and efficiently, taking into account all legal, regulatory and technical aspects of issuing the licences”.
He said that the agreement will reflect positively on licence issuance for companies operating in securities and boost the UAE's investment environment.
Mr Sami Al Qamzi said: “The Department of Economic Development is responsible for planning and enhancing the overall economic performance of the emirate, in line with the objectives of Dubai Strategic Plan. SCA plays a key role in the establishment and licensing of public shareholding companies and those operating in the field of securities. The MoU will help to bring in more transparency, implementation of stronger corporate governance standards and operational efficiencies, and thus benefit the overall economy.”
The joint agreement also includes organizing the records of public joint stock companies to ensure accuracy of data. DED will contribute to the inspections of companies at per SCA’s request, exchange experiences, studies and reports and in training the staff.
